Pakistan Seeks $3 Billion Loan Rollover from UAE

The government of Pakistan has formally requested the United Arab Emirates (UAE) to roll over a $3 billion loan, sources told ProPakistani.

According to sources in the Ministry of Finance, $2 billion of the UAE loan is maturing during the current month, while the remaining $1 billion will mature in July. Prime Minister Shehbaz Sharif has written a letter to the UAE authorities requesting the rollover of all three tranches before their respective maturity dates.

Sources said the government has assured the International Monetary Fund (IMF) that the UAE loans will be rolled over for the duration of the ongoing IMF programme. The $3 billion was deposited by the UAE in Pakistan’s central bank in 2021.

Officials said that one $1 billion tranche will mature in the second week of January, while another $1 billion tranche is due in the third week of January. The government has requested the rollover of all three installments, amounting to $3 billion.

It is pertinent to note that Pakistan has previously stated that the United Arab Emirates is set to acquire a stake in the Fauji Foundation as part of efforts to deepen bilateral economic cooperation. The proposed investment is expected to help ease Pakistan’s external financing pressures.

Deputy Prime Minister and Foreign Minister Ishaq Dar said that the planned UAE investment could help settle a $1 billion liability, while an additional $2 billion loan may be rolled over.

Sources further revealed that during the current fiscal year, Pakistan expects to roll over a total of $12 billion in loans from the UAE, Saudi Arabia, and China.